Saturday, October 8th, 2016

Passenger vehicle sales rise 20% in September, highest in four years

Narada Desk | October 8, 2016 11:56 am Print
Passenger vehicle sales touch highest volumes in over four-and-a-half years, led by record sales in the utility vehicles segment.

Society of Indian Automobile Manufacturers (SIAM) in its report said that Domestic passenger vehicle (PV) sales grew at 19.92 per cent, utility vehicles sales saw 37.93 per cent jump and car sales grew by 15.14 per cent in September.

PV sales in September stood at 2,78,428 units as against 2,32,170 units in the same month last year and utility vehicle sales last month were 66,851 units from 48,467 units a year ago. Car sales, on the other hand, grew to 1,95,259 units as against 1,69,590 units last year.

According to SIAM data, the zoomed up sales was on the back of record monthly sales by market leader Maruti Suzuki. It recorded an increase of sales by 29 per cent last month to 1,37,277 units. Mahindra & Mahindra, Tata Motors and Renault also supported growth.

For the April-September period of the current financial year, the PV segment grew by 12.34 per cent over the same period last fiscal. UVs rose by 40.24 per cent during the period, while passenger cars sales grew by 5.11 per cent.

“The industry is geared up for the festive season. We expect it to be better than previous years,” SIAM Director General Vishnu Mathur said. Demand for passenger vehicles has been driven by new models, especially in the SUV category with the likes of Maruti Vitara Brezza and Hyundai Creta clocking good numbers.

The 21 per cent growth in two-wheeler volumes last month, driven by an increase in scooters (30.60 per cent) and motorcycles (16.33 per cent), was on the back of double-digit growth by leading players such as Hero MotoCorp and Honda Motorcycle & Scooter India, Business standard reported. TVS Motor and Bajaj Auto also posted double-digit growth in domestic sales, it added.

The six-month growth (April-September) for the two-wheeler sector stood at 17.47 per cent. Abdul Majeed, partner at Price Waterhouse and an auto expert, told Business standard that the growth this year would be robust across segments.

“This is due to the combination of many positive factors such as growth in the economy, better cash flows in the hands of customers, increased public investment in infrastructure, new launches, and better monsoon,” he said.

The report said that overall the commercial vehicle segment saw a decline of two per cent in September. However, the light commercial vehicle space saw a 16.43 per cent growth.

Three-wheelers, used mainly as passenger carriers, continued to post growth. In September, sales grew nearly five per cent. Overall industry sales (all vehicles) grew a little over 21 per cent to 1,868,993 units in September.